Aer Lingus to Leave Dublin Forever.
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I have the solution!
I have had a message from the gods.
Increase the ticket prices to make a profit.
It seems to work in every other industry.
Just drove past my local petrol station, guess what, fuel price has gone up.
I have had a message from the gods.
Increase the ticket prices to make a profit.
It seems to work in every other industry.
Just drove past my local petrol station, guess what, fuel price has gone up.
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ncrease the ticket prices to make a profit.
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RTÉ Business: Aer Lingus chief warns of more lay-offs
Aer Lingus warns of 'immediate' lay-offs
Aer Lingus chief executive Christoph Mueller has said the airline will go ahead with cost-cutting measures, after failing to reach agreement on a restructuring plan with all of its unions.
The statement came after a board meeting this evening to consider progress made in overnight talks with unions at the Labour Relations Commission on the restructuring plan.
Mr Mueller said Aer Lingus management would now reduce capacity and eliminate loss-making routes. He said this would result in fewer aircraft, which in turn would lead to additional redundancies beyond those included in its restructuring plan. 'It is very likely that these redundancies will commence immediately and will be compulsory,' he warned.
Mr Mueller said the airline had narrowed the gap with most unions, and was close to signing a deal with them, but he said the 'exception to this promising outcome' was the Irish Airline Pilots Association (IALPA) and to a lesser extent, cabin crew.
IMPACT, which represents cabin crew at Aer Lingus, tonight said it did not wish to contemplate what would happen if the board of the company went ahead with unilateral plans to cut costs.
Earlier, sources close to the talks had said they were optimistic that a deal with head office workers, ground handlers and craft workers was close. But it was understood that there were still substantial unresolved issues between the company and pilots and cabin crew.
Aer Lingus warns of 'immediate' lay-offs
Aer Lingus chief executive Christoph Mueller has said the airline will go ahead with cost-cutting measures, after failing to reach agreement on a restructuring plan with all of its unions.
The statement came after a board meeting this evening to consider progress made in overnight talks with unions at the Labour Relations Commission on the restructuring plan.
Mr Mueller said Aer Lingus management would now reduce capacity and eliminate loss-making routes. He said this would result in fewer aircraft, which in turn would lead to additional redundancies beyond those included in its restructuring plan. 'It is very likely that these redundancies will commence immediately and will be compulsory,' he warned.
Mr Mueller said the airline had narrowed the gap with most unions, and was close to signing a deal with them, but he said the 'exception to this promising outcome' was the Irish Airline Pilots Association (IALPA) and to a lesser extent, cabin crew.
IMPACT, which represents cabin crew at Aer Lingus, tonight said it did not wish to contemplate what would happen if the board of the company went ahead with unilateral plans to cut costs.
Earlier, sources close to the talks had said they were optimistic that a deal with head office workers, ground handlers and craft workers was close. But it was understood that there were still substantial unresolved issues between the company and pilots and cabin crew.
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And this one; Aerlingus to implement cost savings
The Aer Lingus board has decided to proceed unilaterally with its plans to cut €97m worth of costs from the airline.
The move follows the failure of management and unions to reach agreement on alternative plans during seven weeks of negotiations, most recently at the Labour Relations Commission.
The decision was announced by Aer Lingus Chief Executive Christoph Mueller at Dublin Airport this evening.
Mr Mueller said the decision would most likely lead to further redundancies, possibly compulsory, above the 676 voluntary redundancies being sought under the draft plan.
'The board and management will now move to reduce capacity, further eliminating routes which are loss making as a result of our high cost base,' he said.
'This will result in the operation of fewer aircraft, which in turn will lead to additional redundancies beyond those included in the Transformation Plan. It is very likely that these redundancies will commence immediately and will be compulsory.'
Mr Mueller added that they had come close to agreement with the unions on a number of matters and praised the efforts of employees during the negotiations.
However, he said the exception were pilots and cabin crew, with whom agreement was not as close.
He said: 'The exception to this promising outcome is the Irish Airline Pilots' Association (IALPA) and to a lesser extent, cabin crew.
'Instead of sustainable savings of a structural nature, only temporary savings over a short few years were offered by IALPA.'
Mr Mueller did not rule out further talks however, saying what had been achieved could be used as a basis in the future.
But he said equal treatment of all employees means that all employees, including flying staff, must agree.
IMPACT's Christina Carney reiterated that the union believed it had developed proposals that will go a very long way towards meeting the company's savings targets from cabin crew.
IALPA President Evan Cullen had no comment to make in relation to tonight's announcement.
The Aer Lingus board has decided to proceed unilaterally with its plans to cut €97m worth of costs from the airline.
The move follows the failure of management and unions to reach agreement on alternative plans during seven weeks of negotiations, most recently at the Labour Relations Commission.
The decision was announced by Aer Lingus Chief Executive Christoph Mueller at Dublin Airport this evening.
Mr Mueller said the decision would most likely lead to further redundancies, possibly compulsory, above the 676 voluntary redundancies being sought under the draft plan.
'The board and management will now move to reduce capacity, further eliminating routes which are loss making as a result of our high cost base,' he said.
'This will result in the operation of fewer aircraft, which in turn will lead to additional redundancies beyond those included in the Transformation Plan. It is very likely that these redundancies will commence immediately and will be compulsory.'
Mr Mueller added that they had come close to agreement with the unions on a number of matters and praised the efforts of employees during the negotiations.
However, he said the exception were pilots and cabin crew, with whom agreement was not as close.
He said: 'The exception to this promising outcome is the Irish Airline Pilots' Association (IALPA) and to a lesser extent, cabin crew.
'Instead of sustainable savings of a structural nature, only temporary savings over a short few years were offered by IALPA.'
Mr Mueller did not rule out further talks however, saying what had been achieved could be used as a basis in the future.
But he said equal treatment of all employees means that all employees, including flying staff, must agree.
IMPACT's Christina Carney reiterated that the union believed it had developed proposals that will go a very long way towards meeting the company's savings targets from cabin crew.
IALPA President Evan Cullen had no comment to make in relation to tonight's announcement.
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Irish Pilot #104
It was sarcasm, aimed at various posts above stating what great shape Aer Lingus is in. Tonight's announcement shows, I'm afraid, just how wrong that they were.
Incidentally, without the announced cuts, Aer Lingus has about 6 months' cash left. The fact that redundancies will be compulsory (with much poorer severance terms than previously) and immediate, shows just how desperate Aer Lingus' position is. I still think the Irish aviation market would be best served by Aer Lingus going into administration, allowing stronger airlines to cherry pick what they want to the exclusion of Ryanair. That way, all contracts can just be ripped up, and anyone taken on by an alternative employer would either be on that airline's terms (whether on an Irish contract or otherwise), or new contracts could be put in place with more realistic terms and conditions. Anyone with any sense would structure things so that all five of the Unions involved lose any recognition rights.
The above would leave Irish passengers with some level of provider choice, though we have to accept that Ryanair is going to be dominant. The alternative to the above will be a steady erosion of choice but with no incentive either for new entrants to the market, or any realistic takeover of Aer Lingus as a going concern, given that 55% of shares are held by the government and Ryanair. No acquirer would want either on their own share register.
Incidentally, without the announced cuts, Aer Lingus has about 6 months' cash left. The fact that redundancies will be compulsory (with much poorer severance terms than previously) and immediate, shows just how desperate Aer Lingus' position is. I still think the Irish aviation market would be best served by Aer Lingus going into administration, allowing stronger airlines to cherry pick what they want to the exclusion of Ryanair. That way, all contracts can just be ripped up, and anyone taken on by an alternative employer would either be on that airline's terms (whether on an Irish contract or otherwise), or new contracts could be put in place with more realistic terms and conditions. Anyone with any sense would structure things so that all five of the Unions involved lose any recognition rights.
The above would leave Irish passengers with some level of provider choice, though we have to accept that Ryanair is going to be dominant. The alternative to the above will be a steady erosion of choice but with no incentive either for new entrants to the market, or any realistic takeover of Aer Lingus as a going concern, given that 55% of shares are held by the government and Ryanair. No acquirer would want either on their own share register.
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The 4% demand that destroyed an airline.
The Dwarf strikes again.
Operation Greenfield lads? Really?
The Irish Times - Wednesday, December 2, 2009
Aer Lingus warns 1,000 jobs may go after talks fail
CIARÁN HANCOCK Business Affairs Correspondent
Aer Lingus warned yesterday that more than 1,000 workers could be made redundant over the coming months after the airline failed to reach agreement with unions on a plan to cut €97 million from costs by 2011.
Chief executive Christoph Mueller said failure to agree a deal meant the airline would ground aircraft in the new year and close loss-making routes. This strategy was decided by the board of Aer Lingus at a 90-minute “extraordinary” meeting at its headquarters yesterday evening.
The board will meet again on Friday to decide the scale of the cuts, Mr Mueller said. Aer Lingus’s hardline approach has raised the prospect of industrial action, possibly before Christmas.
Aer Lingus had originally sought 676 job cuts but Mr Mueller said this would now be “north of 1,000”.
Talks with unions broke down at about 8am yesterday morning following seven weeks of negotiations. Mr Mueller said the two sides were “so close to an agreement this morning [Monday] that it was almost ready for a signature”.
“The board has decided today to move,” he said. “It is regrettable.”
It is understood that agreement was close to being reached with craft workers, ground operations, and head office and support staff. But there was still some distance to be bridged in talks with pilots and cabin crew.
“We haven’t reached an agreement with the pilot association and to a lesser extent with the cabin [crew],” Mr Mueller said.
He said proposals from the pilots, which included an extra 4 per cent stake in the airline, were “not sustainable” and the price was “too high”. It is understood that the pilots offered cost savings of €30 million a year. This included pay cuts of 10 per cent, extra productivity and other concessions.
The pilots are also thought to have proposed that the company establish a tax-efficient share-saving scheme that would have given them access to an extra 4 per cent stake in the airline. These shares are currently worth about €12 million. The pilots already own about 4.5 per cent of Aer Lingus.
No comment was available from the pilots’ representative body Ialpa last night. Impact, which represents cabin crew, said it was disappointed with Aer Lingus’s decision. The union said it had submitted cost-saving proposals that have been “checked and verified” by accountants Grant Thornton.
“The union remains available to discuss alternatives with the company,” a spokesman said.
It remains to be seen if the National Implementation Body, the State’s main troubleshooting mechanism under social partnership, will once again seek to get involved in the dispute.
Siptu divisional organiser Gerry McCormack said the union “would welcome an intervention to get this resolved”.
Operation Greenfield lads? Really?
The Irish Times - Wednesday, December 2, 2009
Aer Lingus warns 1,000 jobs may go after talks fail
CIARÁN HANCOCK Business Affairs Correspondent
Aer Lingus warned yesterday that more than 1,000 workers could be made redundant over the coming months after the airline failed to reach agreement with unions on a plan to cut €97 million from costs by 2011.
Chief executive Christoph Mueller said failure to agree a deal meant the airline would ground aircraft in the new year and close loss-making routes. This strategy was decided by the board of Aer Lingus at a 90-minute “extraordinary” meeting at its headquarters yesterday evening.
The board will meet again on Friday to decide the scale of the cuts, Mr Mueller said. Aer Lingus’s hardline approach has raised the prospect of industrial action, possibly before Christmas.
Aer Lingus had originally sought 676 job cuts but Mr Mueller said this would now be “north of 1,000”.
Talks with unions broke down at about 8am yesterday morning following seven weeks of negotiations. Mr Mueller said the two sides were “so close to an agreement this morning [Monday] that it was almost ready for a signature”.
“The board has decided today to move,” he said. “It is regrettable.”
It is understood that agreement was close to being reached with craft workers, ground operations, and head office and support staff. But there was still some distance to be bridged in talks with pilots and cabin crew.
“We haven’t reached an agreement with the pilot association and to a lesser extent with the cabin [crew],” Mr Mueller said.
He said proposals from the pilots, which included an extra 4 per cent stake in the airline, were “not sustainable” and the price was “too high”. It is understood that the pilots offered cost savings of €30 million a year. This included pay cuts of 10 per cent, extra productivity and other concessions.
The pilots are also thought to have proposed that the company establish a tax-efficient share-saving scheme that would have given them access to an extra 4 per cent stake in the airline. These shares are currently worth about €12 million. The pilots already own about 4.5 per cent of Aer Lingus.
No comment was available from the pilots’ representative body Ialpa last night. Impact, which represents cabin crew, said it was disappointed with Aer Lingus’s decision. The union said it had submitted cost-saving proposals that have been “checked and verified” by accountants Grant Thornton.
“The union remains available to discuss alternatives with the company,” a spokesman said.
It remains to be seen if the National Implementation Body, the State’s main troubleshooting mechanism under social partnership, will once again seek to get involved in the dispute.
Siptu divisional organiser Gerry McCormack said the union “would welcome an intervention to get this resolved”.
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Aer Lingus and the unions always indulge in brinkmanship when it comes to negotiations. I used to work for a subsidiary, it was a tiresome and worrying ritual every couple of years.
The problem with brinkmanship is the potential that both parties to fall over the edge. There won't be a parachute from the government this time. Dangerous days ahead for the airline.
The problem with brinkmanship is the potential that both parties to fall over the edge. There won't be a parachute from the government this time. Dangerous days ahead for the airline.
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Mueller's statement has been carefully written designed to show the pilots are not willing to accept changes compared to other staff. Nobody will have sympathy for the pilots if they go out on strike not even the other EI staff.
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what a sad few days just gone where we have once again been subject to the insane rantings of loopy leo and slime shoddy (the self appointed lo-co experts)e.t.c..how sad can your life be that all you can do is bait other professional pilots and wish ill upon them,in what i believe is a sick attempt to drag everyone down to the ryanair level.being at the base level,both leo and slime,i am sure you both would be happy to see all of aviation dragged down to your level,so you could once again try to justify your suppossed position as the best paid scumbags in europe.shame on you!!!
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So, they (the unions) are happy with 10% pay cut for management types?
NICE!!!
As a heads up for these guys, 2 years ago I took a 50% pay cut (redefinition of contract), a year ago I lost a further 25% when all tasks additional to my role (for which I was remunerated) became obligatory and non-remunerated, and then I lost a further 20% of that this year. In total, that is just 38% of what I was paid 2 years ago.
I am now paid less on an hourly basis than my friend pays some of the waitresses who work in his cafe!
AND, I am entrusted with upholding flight safety at NAA level.
If the guys at EI can bite the bullet and take cuts like that, then there may be a chance for many of them. I somehow suspect that pilots with 20 years experience will not be willing to do as I did and would prefer the dole queue. Me, I'm simply too proud for that.
RIX
NICE!!!
As a heads up for these guys, 2 years ago I took a 50% pay cut (redefinition of contract), a year ago I lost a further 25% when all tasks additional to my role (for which I was remunerated) became obligatory and non-remunerated, and then I lost a further 20% of that this year. In total, that is just 38% of what I was paid 2 years ago.
I am now paid less on an hourly basis than my friend pays some of the waitresses who work in his cafe!
AND, I am entrusted with upholding flight safety at NAA level.
If the guys at EI can bite the bullet and take cuts like that, then there may be a chance for many of them. I somehow suspect that pilots with 20 years experience will not be willing to do as I did and would prefer the dole queue. Me, I'm simply too proud for that.
RIX
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Love it. Costs are too high, and it's the fault of management for failing to manage. Management try to cut costs and immediately they're the villains!
I wish Mr Muller the best of luck in trying to bring a national airline with a proud tradition back from the brink of self-inflicted extinction. It will not be an easy task and he will get scant few thanks.
Those crew who think they are being so hard done by should remember they do have a choice and there is another local airline who would doubtless employ them if the terms offered by EIN are so bad.
I wish Mr Muller the best of luck in trying to bring a national airline with a proud tradition back from the brink of self-inflicted extinction. It will not be an easy task and he will get scant few thanks.
Those crew who think they are being so hard done by should remember they do have a choice and there is another local airline who would doubtless employ them if the terms offered by EIN are so bad.
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For all those arm-chair critics: The Facts!
Aer Lingus Staff Information Notice from IALPA
Aer Lingus reject IALPA’s offer of €35m in annual savings
Dear Colleague,
You will already have seen the Staff (Mis) Information Notice in which Aer Lingus tries to blame IALPA for the lack of final agreement at the LRC negotiations. While negotiations are still ongoing, it is important that you and the rest of our colleagues should know the real truth and IALPA is therefore issuing this bulletin in order to correct the misleading information given by management.
In its Staff Information Notice, Aer Lingus alleges that:
• IALPA has not offered “sustainable savings of a structural nature”
• IALPA has offered “only temporary savings over a short few years”
• IALPA has looked for “very high compensation in return”
Unfortunately, each of these statements is incorrect. Our CEO, Christoph Mueller, said on 7th October 2009: “What is most important to us is that we reach the savings amount as a total, but there might be different ways to get there…maybe there are other ways to get the same amount of money.”
IALPA has offered real, significant and verifiable savings worth in excess of €35 million per year to Aer Lingus for the life of the plan. This includes, but is not limited to:
• Pilots have offered to take a 10% pay cut on the basis that the debt of the Tailwind Trust is made good. Aer Lingus recognised the real and tangible contribution made by the Tailwind Trust to the airline throughout the LRC negotiations. This is worth €8.1m per year.
• Voluntary redundancy, valued at €15.2 million per year, according to Aer Lingus’ own figures.
• Increase in long haul productivity. We say this is worth €9 million per year; even Aer Lingus accepted it was worth at least €5 million per year.
• Increase in retirement age by 5 years and an increase in pension contribution by pilots of 4% of salary. We say this is worth €5.85 million per year; Aer Lingus say it is worth ZERO, despite their constructive obligation to the deficit in the pension schemes – which has yet to be properly accounted for by the company.
In relation to the proposed pay cut of 10%, it is exactly the same percentage pay cut as our CEO and his senior management team are prepared to take. Our proposal is very simple. When the pay for senior management is restored, we want our pay restored too. We think this is fair. Aer Lingus management don’t. Management were asked repeatedly in the LRC to agree to Pay Restoration for all staff on the same basis and at the same time as Pay Restoration for Aer Lingus senior executives (including those who had negotiated ‘golden parachutes’ for themselves in the event of a takeover). They dismissed this proposal out of hand. They want permanent pay cuts for us and temporary pay cuts for themselves.
But they want to blame us when we don’t agree. You may know that IALPA’s pilots have already spent €30 million of our own money buying Aer Lingus shares to defend the company from hostile takeover attempts. As well as the €35 million plus per year offered to the company in cost savings, pilots also offered an extra reduction in variable pay of several million per year. In return we asked for additional equity in the company to assist in the defence of the company in the event of another hostile takeover attempt. We think this is reasonable and in the best interests of all Aer Lingus staff.
We believe that all Aer Lingus staff should be given a similar opportunity to acquire shares.
There is one aspect of the current negotiations that management have not made you aware of – they have proposed that the pilots alone ‘shall shoulder the entire (pilots’ pension) scheme deficit’. At the last actuarial valuation (March 2009), this was estimated to be in the region of €147 million.
While IALPA approached the negotiations in good faith and reached a tacit agreement on over €35m in annual savings, management continued to pursue a tactic of outsourcing both here and the UK.
IALPA is very disappointed by Aer Lingus’ attempt to wage a propaganda war against its pilots. We think it’s important you should know the truth. We will arrange a meeting in ALSAA to which all Aer Lingus employees (including members of management) are invited.
We will give you the full background to the current situation and answer all your questions. We are committed to this airline and we have put our own money on the line to defend its independence. We want to join with the management and all employees of Aer Lingus in making this a great airline once again. We want management to stop fighting us and to start fighting the competition. We believe the current management team has demonstrated that they have the ability to do so. We hope they have the will to do so.
In the meantime, IALPA is as committed as ever to reaching a fair and equitable agreement to secure the airline’s future. In this context, we remain available to engage in negotiations with management.
Aer Lingus Staff Information Notice from IALPA
Aer Lingus reject IALPA’s offer of €35m in annual savings
Dear Colleague,
You will already have seen the Staff (Mis) Information Notice in which Aer Lingus tries to blame IALPA for the lack of final agreement at the LRC negotiations. While negotiations are still ongoing, it is important that you and the rest of our colleagues should know the real truth and IALPA is therefore issuing this bulletin in order to correct the misleading information given by management.
In its Staff Information Notice, Aer Lingus alleges that:
• IALPA has not offered “sustainable savings of a structural nature”
• IALPA has offered “only temporary savings over a short few years”
• IALPA has looked for “very high compensation in return”
Unfortunately, each of these statements is incorrect. Our CEO, Christoph Mueller, said on 7th October 2009: “What is most important to us is that we reach the savings amount as a total, but there might be different ways to get there…maybe there are other ways to get the same amount of money.”
IALPA has offered real, significant and verifiable savings worth in excess of €35 million per year to Aer Lingus for the life of the plan. This includes, but is not limited to:
• Pilots have offered to take a 10% pay cut on the basis that the debt of the Tailwind Trust is made good. Aer Lingus recognised the real and tangible contribution made by the Tailwind Trust to the airline throughout the LRC negotiations. This is worth €8.1m per year.
• Voluntary redundancy, valued at €15.2 million per year, according to Aer Lingus’ own figures.
• Increase in long haul productivity. We say this is worth €9 million per year; even Aer Lingus accepted it was worth at least €5 million per year.
• Increase in retirement age by 5 years and an increase in pension contribution by pilots of 4% of salary. We say this is worth €5.85 million per year; Aer Lingus say it is worth ZERO, despite their constructive obligation to the deficit in the pension schemes – which has yet to be properly accounted for by the company.
In relation to the proposed pay cut of 10%, it is exactly the same percentage pay cut as our CEO and his senior management team are prepared to take. Our proposal is very simple. When the pay for senior management is restored, we want our pay restored too. We think this is fair. Aer Lingus management don’t. Management were asked repeatedly in the LRC to agree to Pay Restoration for all staff on the same basis and at the same time as Pay Restoration for Aer Lingus senior executives (including those who had negotiated ‘golden parachutes’ for themselves in the event of a takeover). They dismissed this proposal out of hand. They want permanent pay cuts for us and temporary pay cuts for themselves.
But they want to blame us when we don’t agree. You may know that IALPA’s pilots have already spent €30 million of our own money buying Aer Lingus shares to defend the company from hostile takeover attempts. As well as the €35 million plus per year offered to the company in cost savings, pilots also offered an extra reduction in variable pay of several million per year. In return we asked for additional equity in the company to assist in the defence of the company in the event of another hostile takeover attempt. We think this is reasonable and in the best interests of all Aer Lingus staff.
We believe that all Aer Lingus staff should be given a similar opportunity to acquire shares.
There is one aspect of the current negotiations that management have not made you aware of – they have proposed that the pilots alone ‘shall shoulder the entire (pilots’ pension) scheme deficit’. At the last actuarial valuation (March 2009), this was estimated to be in the region of €147 million.
While IALPA approached the negotiations in good faith and reached a tacit agreement on over €35m in annual savings, management continued to pursue a tactic of outsourcing both here and the UK.
IALPA is very disappointed by Aer Lingus’ attempt to wage a propaganda war against its pilots. We think it’s important you should know the truth. We will arrange a meeting in ALSAA to which all Aer Lingus employees (including members of management) are invited.
We will give you the full background to the current situation and answer all your questions. We are committed to this airline and we have put our own money on the line to defend its independence. We want to join with the management and all employees of Aer Lingus in making this a great airline once again. We want management to stop fighting us and to start fighting the competition. We believe the current management team has demonstrated that they have the ability to do so. We hope they have the will to do so.
In the meantime, IALPA is as committed as ever to reaching a fair and equitable agreement to secure the airline’s future. In this context, we remain available to engage in negotiations with management.